The decentralized finance (DeFi) sector is among the most innovative, but that does not exempt it from regulation. This was stated by the SEC Chair Gary Gensler at the Yahoo Finance summit.
Decentralized finance “has started to press up some other innovations,” @SECGov Chair @GaryGensler says. “It reminds me a lot about when peer-to-peer lending came along… We had to take 3, 4, 5 years to bring it within an investor protection.” https://t.co/0LV2005gNR pic.twitter.com/wOeRvVn90n
— Yahoo Finance (@YahooFinance) October 25, 2021
Gensler said that DeFi is starting to crowd out some other innovations.
“Although all of this is interesting, it reminds me of the time when roughly 15 years ago peer-to-peer lending emerged. […] It took us three, four, five years to provide investor protection,” the official noted.
The SEC chair added that financial stability and public safety are the top priorities.
“While all this is interesting, but it reminds me of the time when roughly 15 years ago peer-to-peer lending emerged. […] It took us three, four, five years to provide investor protection,” the official noted.
In August, Gensler warned about tighter regulation of stablecoins and DeFi. In his view, decentralization does not provide immunity from SEC oversight.
Earlier in October, Gensler said the Commission had no plan to ban cryptocurrencies, noting that this is a prerogative of Congress.
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